Finance Director: Colin Spencer
Overview: Environmental/ecological consultancy
Issue: Inaccurate and inconsistent management accounts, slow response from existing accountant and no strategic guidance/advice.
Corrective Actions:
- Bookkeeper was removed and replaced with an external bookkeeping company who check all balance sheet accounts on a monthly basis
- External accountant was replaced with an alternative, highly recommended practice
- Set up chart of accounts in Sage to ensure that company and divisional profitability easy to monitor
- Initially set up budgets and then profit forecasts that linked into balance sheet and cashflow forecasts for the year
- Made the Directors more aware of the ongoing cashflow situation, with weekly bank reconciliations and forecasts
Improvements since action taken:
- Increased accuracy in financial information
- Increased awareness of cash situation which has lead to appointment of a part time credit controller
- Quick turn around of year end accounts
- Reduced price for external accountant and provision of a year end file with all relevant information
- Working with Directors to explore new job costing system to give better understanding of client and job profitability